Liontrust denies Artemis takeover talks

13th Mar 2024 09:15

(Sharecast News) - Liontrust Asset Management has denied it is in talks to acquire smaller rival Artemis.

The Financial Times reported that Liontrust, which has assets under management of £28bn, had held early stage talks with Artemis about a potential tie up. It cited three anonymous sources, although another told the newspaper that the talks had not progressed.

London-based Artemis, which is owned by US investment firm Affiliated Managers Group and its 27 partners, has £23bn in AUM.

However, in a brief statement the FTSE 250 firm noted: "Liontrust is not in talks with Artemis over an acquisition of its business."

Artemis has so far declined to comment.

Shares in Liontrust, which jumped on Tuesday, had fallen 1% to 685.5p by 0900 GMT.

Liontrust has snapped up seven smaller asset managers over the last 12 years, as it looks to diversify and expand its core business.

It also made a £95m all-share offer for GAM Investments last year, but failed to secure the backing of the Swiss firm's shareholders.

Russ Mould, investment director at AJ Bell, called the takeover speculation "an interesting development".

He continued: "The asset management industry continues to go through a period of consolidation as parties seek to combine strengths to achieve greater economies of scale as they face the headwinds of tighter regulation and more investors shifting from active to passive funds.

"Liontrust has a mixed track record of making acquisitions and its shareholders will certainly hope any further deals can help to revive the share price and put the company back on the right path."